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Determinants of Poverty in Eritrea: A Household level Analysis

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  • Eyob Fissuh & Mark Harris

Abstract

This paper uses DOGEV model for modelling determinates of poverty in Eritrea by employing Eritrean Household Income and Expenditure Survey 1996/97 data. Education impacts welfare differently across poverty categories and there are pockets of poverty in the educated population sub group. Effect of household size is not the same across poverty categories. Contrary to the evidence in the literature the relationship between age and probability of being poor was found to be convex to the origin. Regional unemployment was found to be positively associated with poverty. Remittances, house ownership and access to sewage and sanitation facilities were found to be highly negatively related to poverty. This paper also finds out that there is captivity in poverty category and a significant correlation between poverty orderings which renders usage of standard multinomial/ordered logit in poverty analysis less defensible

Suggested Citation

  • Eyob Fissuh & Mark Harris, 2004. "Determinants of Poverty in Eritrea: A Household level Analysis," Econometric Society 2004 Australasian Meetings 364, Econometric Society.
    • Handle: RePEc:ecm:ausm04:364
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    File URL: http://repec.org/esAUSM04/up.26810.1088476172.pdf
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    References listed on IDEAS

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    1. Richard H. Adams, Jr. & John Page, 2003. "International migration, remittances, and poverty in developing countries," Policy Research Working Paper Series 3179, The World Bank.
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    4. Geda, A. & de Jong, N. & Mwabu, G. & Kimenyi, M.S., 2001. "Determinants of poverty in Kenya : a household level analysis," ISS Working Papers - General Series 19095, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    5. Diamond, Charles A. & Simon, Curtis J. & Warner, John T., 1990. "A multinomial probability model of size income distribution," Journal of Econometrics, Elsevier, vol. 43(1-2), pages 43-61.
    6. Marc J. I. Gaudry, 1980. "Dogit and Logit Models of Travel Mode Choice in Montreal," Canadian Journal of Economics, Canadian Economics Association, vol. 13(2), pages 268-279, May.
    7. Amuedo-Dorantes, Catalina, 2004. "Determinants and Poverty Implications of Informal Sector Work in Chile," Economic Development and Cultural Change, University of Chicago Press, vol. 52(2), pages 347-368, January.
    8. François Bourguignon & Satya R. Chakravarty, 2019. "The Measurement of Multidimensional Poverty," Themes in Economics, in: Satya R. Chakravarty (ed.), Poverty, Social Exclusion and Stochastic Dominance, pages 83-107, Springer.
    9. Tim R.L. Fry & Mark N. Harris, 2002. "The DOGEV Model," Monash Econometrics and Business Statistics Working Papers 7/02, Monash University, Department of Econometrics and Business Statistics.
    10. Barrientos, Armando & Gorman, Mark & Heslop, Amanda, 2003. "Old Age Poverty in Developing Countries: Contributions and Dependence in Later Life," World Development, Elsevier, vol. 31(3), pages 555-570, March.
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    Cited by:

    1. Bluffstone, Randall & Yesuf, Mahmud & Bushie, Bilisuma & Damite, Demessie, 2008. "Rural Livelihoods, Poverty, and the Millennium Development Goals: Evidence from Ethiopian Survey Data," RFF Working Paper Series dp-08-07-efd, Resources for the Future.
    2. Diagne, Youssoupha S & Diane, Fatou, 2008. "Impact Des Transferts Des Migrants Sur La Pauvreté Au Sénégal [Impact of international workers' remittances on poverty in Senegal]," MPRA Paper 54866, University Library of Munich, Germany.
    3. Paul Makdissi & Dorothée Boccanfuso & Mathieu Audet, 2006. "The Geographic Determinants of Poverty in Albania," Cahiers de recherche 06-12, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.

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    More about this item

    Keywords

    Poverty; Eritrea; Dogev; Dogit and Ogev;
    All these keywords.

    JEL classification:

    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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